Disaster..., page-2

Lest readers are confused, the "$5.3m of provisions for bad contracts" mentioned by ryrie12 evidently does not relate to the OTR position at the 31 Dec 2015. Rather it is a retrospective assessment of the state of affairs that existed at 30 June 2015 in the Bloomer business that was acquired.

As per note 10 of the HY accounts , the present OTR item for "Provision for onerous contracts" is $0.544m, not $5.3m. Evidently much or all of the 5.3m retrospective provision is already subsumed in the present HY results.
(The present total provision for all items, current and non current, is $1.1m.)

Evidently the bloomer acquisition contract allowed for adjustments in the light of how the work in hand and business panned out in the subsequent 12 months. As per note 7, it appears that in consequence of that adjustment process, Bloomer as vendor, now owes OTR $2.26m as a net adjustment of the acquisition consideration (and that amount is included in the trade and other receivables amount in the accounts for OTR).

Matters are perhaps not quite as dire as ryrie12 suggests, but I expect the share price will respond with a passable imitation of Wylie Coyote after he discovers he has lost his support.